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The new agency would regulate mortgages, credit cards and other forms of consumer debt.
Cramdown is already allowed for other forms of consumer debt, such as mortgages on holiday homes.
In normal times, those kinds of yields would automatically mean lower interest rates on mortgages, automobile loans and other forms of consumer debt.
Here are the areas that must be fixed: PROTECT CONSUMERS The administration has called for an independent Consumer Financial Protection Agency, with power to police banks and nonbanks for bad lending in mortgages and other forms of consumer debt.
The TRA caused a substantial increase in the demand for mortgage debt, because the tax deductions on mortgages made those instruments cheaper than other forms of consumer debt for many homeowners.
"We are not finished with the mortgage problem, but you are starting to see increased delinquencies in other forms of consumer debt," said Paul Kasriel, an economist at Northern Trust Securities.
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Although the findings may seem surprising, MGIC researchers say the study documents that American families increasingly are using home real estate equity to manage other forms of consumer debt--particularly credit cards, auto loans, department store charges and second and third mortgages.
Student-loan debt is the only form of consumer debt that has grown since the crisis of 2008, according to the New York Federal Reserve Board.
Student loans are the only form of consumer debt that continued to grow in the wake of the housing crisis – a report published earlier this year found that the US student debt appear to be heading towards a similar crisis.
It is now the second-highest form of consumer debt after mortgages, overtaking credit card borrowing and car loans.
Student loan debt is the only form of consumer debt to grow since late 2008, and has passed credit card debt as the second most prevalent form of consumer debt, trailing only mortgage debt.
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